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China warns staying silent or compromising on a terror threat will only embolden bullies to push further, tensions rise as Pakistan warns of imminent India incursion after Kashmir attack and Canadian Prime Minister Mark Carney says his country would never yield to the of the United States as he declared victory in federal elections.
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Our top story. China has warned that staying silent or compromising on tariff threats will only embolden bullies to push further.
Foreign Minister Wang Yi emphasized the mutually beneficial and complementary nature of global trade at BRICS Foreign Ministers meeting in Brazil.
He criticized the United States for serving its own purposes at the expense of international interests and going against the international order that Washington has benefited from a great deal.
Wang Yi called on BRICS to protect the multilateral trading system and promote free trade.
So to discuss this further, let's bring in Professor Chu Chiang, a fellow of the Belt and Road Research Center at Minzu University of China.
Thanks for joining us, Professor Chu.
Thank you. Professor, Foreign Minister Wang Yi warned that staying silent or compromising on tariff threats would only embolden bullies to escalate their actions.
What do you think Wang Yi is trying to convey with this statement and what do you make of the timing?
I think Minister Wang Yi representing China has made it sounds very loud and clear to that uh...
trying to whenever that cost will never know down toward all kinds of bradley well you know stand up on our own ground and you know wait for what ever whatever comes to us and also we were really suggesting everybody or other the same pressures to do it try to do the same thing because i think trying to have this muscle reflections our old about what the similar situation coming to it because of we have experienced the whole situation back in a chain dynasty which is one hundred twenty years ago, when we were even threatened about the Western powers, the colonists and imperialists, and, yes, we backed
off. But what's the situation?
Well, it never gets us better anywhere.
Any time we just back off, we're knee down, we bend our head down, and they push over.
They push over and further again until we just lost everything.
So this is a very bloody experience, well learned.
So we will not repeat the same mistake again.
And also I would like to repeat that, you know, a similar situation also happened in the United States as well, because like, you know, in Pearl Harbor, you know, Japan used to be dominated, well, Japan and perilous did dominated by, you know, the nationalists and also the populists back at home.
So, they crazily waged a war towards the United States, a country very, very far away, and they bombed Pearl Harbor.
Did the United States and their heroic people back off?
and say okay let's wait and showdown and talk to japanese invaders no and united states army either more military forces the addressed normally stand up in a fight against the very determined determined that lake so i think this is the severity have been you know up from been took for this to country just so i think for both of us we will never back off and also uh...
all the other country to be a good job probably after ninety days a White Trump has made all this fuss and going through all this kind of experience as audios.
He just wanted to say after 90s, okay, we will stop it by now.
No, he won't. Trump is very persistent and very, very stubborn.
He has already been doing what he promised when he was in the 40s, in the 50s, so he will deliver what he promised.
So there is another round of the impact to well be here, and don't just be naive.
That's a very insightful analysis.
Professor Wang Yi also mentioned in this complex international context, BRICS countries must defend the multilateral trade system and promote mutually beneficial integrated development.
With global trade protectionism on the rise, what specific practical measures can BRICS take to safeguard the trade interests of both themselves and Global South Countries?
Well, as I always said, a very, very sorry to say that, but currently globalization is facing the recession and, you know, the universal globalization problem is going to fall into what we call the segregated, you know, or mosaic globalization.
So the whole world would divide it into belts or like the regions.
So I think the BRIC countries is probably one of those big BRICs or big regions that we can just really count on.
So, politically, I think we can just, you know, corporate together, just uphold the multilateralism and the cooperation.
And I think it's still here.
We're trying to provide, you know, leadership and also the contribution towards a world governance, try to provide a fair and, you know, very peaceful environment for the world politics to stand up for the South nations and also economically, I think, a globalization within our own region and also free trade and the to build a new free world with China and with Brazil as the new free world leaders this kind of scenario is going to pop out and also technology and also inclusive development of green energy you know this kind of the new area it is also a potential cooperation area because we just
don't want to do the very old things together not like before but we will do actually we will do a lot of a new thing together who's that's obvious uh...
on you know uh... developing nations or emerging market only do you know the old corporation the poker can upon you know that labor -intensive industry or we thought that that no we're gonna focus on a i work in the you bring energy we're gonna you know teach each other how to climb up the technology tree and also to develop our common community with a share fade into your he'll hire crown dot op upon the value change and this is what we can do together So while we welcome all the other countries to join us, the European Union, Australia, even for the United States, you can think for another solution to
get out the current craziness.
But I think if you don't want to join us, fine.
I think we're representing 40 % of the world population and about 35 % of the world GDP.
We're going to just do fine up on ourself.
Speaking of innovative path going forward, Wang Yi also called for strengthening global financial governance and reforming the international financial architecture to better reflect changes in the global economic landscape today.
What kind of resistance my BRICs face from traditional financial powerhouses during discussions on, for example, the World Bank's Equity Review and IMF's COTA adjustments, And how can the BRICS countries effectively respond to that?
Well, I think the number one obstacle is still the BRICS countries where global south nations are still comparatively weaker in the economy, smaller size and competitiveness, so that's a reality we really need to face.
And secondly, I think the United States still has a very strong weapon about US salary and also its payment assistance and more like a financial nuclear weapon.
I'm not going to lie about it, but they will threaten you.
OK, if you're going to join China's network, if you're going to, you know, gang up together, quote, unquote, you probably will be kicked off with the system, and also I'm not going to allow you to use U .S. dollar.
So fine, this is going to be the reality we're going to face.
But this is a pathology, this is the chronicle thesis faced by the global financial payments system and the global trade.
We need to solve this kind of problem.
And if it's not going to be now, it's going to be, you know, coating us in the very long run.
So we need a parallel payment system, financial service system, for example, like IMF, for example, like the FDR, for example, like the SIF system from China.
And we need this to build up the resilience, to build a robotateness in our payment and a trade system so that we won't be blackmailed, we won't be chased off by, squeezed off by these international financial hedge money.
So in the future, we have to build our own strands, size up our own trade, and try to use our own currencies to build this, what we call, this settlement and clearing system network, to use our own payment system and Fintech, and also maybe, if we can talk through like five or 10 years, we will see a new rising financial, you know, a better rising on this whole world global trade system.
Professor, this gathering marks Indonesia's first participation as an official member in the BRICS Foreign Ministers' Meeting.
What opportunities do you foresee this new membership offering BRICS in advancing peace and security in the future?
Well, I think Indonesia is a really important partner not only for the BRICS country, but also for the ASEAN Arrangement and also the RCEP.
So it's a country with probably the largest territory among all ASEAN nations, and also So he has more than hundreds of millions of population, and it's a very, very fast -growing emerging economy, and also it's of international political importance that's been showing up really, really quickly.
I think the far eastern Asia is the last resort for the global certainty for the global peace and the global supply chain, now with China, with ASEAN nations, especially Malaysia, Singapore, Indonesia, Vietnam.
And all these important nations in the whole region have already been on the same page.
They're already incorporated with each other.
They won't be disrupted by any international, political coercion, and I think this far -eastern certainty, this paradise, will be stabilized.
It will show the whole world this piece of land will be peaceful.
You are free to do trading here.
You can still buy things and sell things in its grand market.
So certainty and also the future potential will be guaranteed in here, and it will further protect the world's stability piece, and also provide a lot of certainty for the global supply chain, for example, to urge, to curb the inflation, and also provide competitive product and services for the rest of the world.
Thanks, professor, for your insight of analysis.
That was Professor Chu Chang, a fellow of the Belt and Road Research Center at Minsu University of China.
Coming up, tensions rise as Pakistan warns of eminent Indian incursion after Kashmir attack.
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Tensions are flaring between nuclear -armed neighbors India and Pakistan following a deadly militant attack on tourists in India, Khanchad Kashmir.
Pakistan's Defence Minister warns that a military incursion by India appears imminent, saying troops have been reinforced along the border.
Islamabad has rejected New Delhi's accusation and is calling for an independent investigation into the attack.
To delve into this issue, let's bring our guest, Dr. Rong -Yin, Chair Professor with the School of International Studies at Sichuan University.
Thanks for joining us, Professor.
Thank you very much for having me.
Professor the latest terrorist attack has reignited tensions between India and Pakistan.
From a geopolitical and historical perspective the Kashmir dispute has long been a flashpoint between the two nations, So could you please walk us through the complex historical roots of this conflict.
Why does it so often lead to repeated cycles of confrontation following such incidents?
Right, I think the Kashmir dispute, but it certainly has a long history, very much related to the very day when India and Pakistan were partitioned or divided into two sort of a nation or nation state.
The idea was, of course, when India and Pakistan was partitioned, the partition was based on the religion, I mean religious sort of identity.
In other words, the majority of Muslims would have become one state that is today's Pakistan.
And the other, I mean, the Hindu -dominated sort of nation becomes an India.
Unfortunately, I think, in addition to the so -called British Raj, British India, there are over 540 -something princely states.
Again, primarily, I mean, clearly divided, it can be divided according to their religious sort of identity.
But then there are a few which, I mean, the situation becomes very complicated.
And Kashmir, Jammu and Kashmir was one of them, because I think if you look at the residents, look at the majority Muslims, while the rulers of that princess state were the Hindu.
So it becomes a question that which part of the newly -borned nation -state India or Pakistan, that should have been – so that was the dispute.
But because of that, ever since the partition, India and Pakistan fought four wars and numerous in other words the dispute has now had terrorist or terrorist radical related sort of aspect.
And whenever the dispute, I mean the incident attacks took place and with the stroke provoked that bad feeling.
But the most importantly to related it was to provoke a kind of a two nation state because of their history, because of their domestic politics turning into a kind of a conflict.
And that did become very much true in the context when, in 1998, the two countries has demonstrated their nuclear capability by testing and conducting nuclear testing.
So India -Pakistan tension arising from history, arriving at the dispute of Kashmir.
and whenever there's incidents like we had had last week, and when there arose a lot of bad feelings, a lot of concerns and the most important tensions between the two countries could easily or raise a concern that these conflicts, the clashes could even lead to a nuclear conflict.
Thank you for that detailed analysis.
We've also seen Pakistan defense minister Asef warning of an imminent military incursion by India, Pakistan has reportedly reinforced its troops.
So in your view, beyond the long -standing hostilities between the two nations, what real -time factors might have led Minister Aaseef to conclude that India is preparing to launch an attack?
That's a great question.
I think the Kashmir dispute that we have discussed, that very much relate to the history, the territory, the religious hostilities.
But it also, I think, in recent years has lead to a kind of doctrine, a military doctrine, that from the viewpoint of India, how they can manage or they can stop the incident like that.
And that has become even more true in the context where India are now militarily, economically, and even in terms of comprehensive national power, much way ahead of Pakistan.
So for India it has become not only territorial, historical, religious, this becomes a national pride in the context when India, I mean people are talking about India rise or India strongly feel that it's a major country, and cannot accept the fact that it was not able to address that kind of issue.
And from a Pakistan perspective, this is very much related to its sovereignty, territory integrity, religious feelings.
But more importantly, I think, as the gap, comprehensive national power grows, it becomes an existential issue.
do. So when India threats, I mean retaliate or threat, to a kind of military response against in V Jerome, the terrorist attacks were had had, then Pakistan would have always responded in that, it would have to.
In a way that by resorting all the available sort of a means, which in this case I think Pakistan related to its nuclear capabilities.
So all in all, we have disputes, long history, but now we have a real danger that it could lead to not only rising tensions but also, possibly the real threat of nuclear clashes, nuclear conflicts.
Indeed, the situation remains highly volatile.
We have also seen India unilaterally releasing water from a dam without prior notice, causing a sharp rise in water levels downstream in Pakistani areas and even triggering flooding in some regions.
The move Pakistan claims violate the Induced Waters Treaty.
So how do you view this tactic of weaponizing water resources?
And what deeper implications might it have for bilateral ties and regional security?
I think it's very unfortunate and also unprecedented for India being a bigger country, being a countries that aspire to play a bigger role at the regional, at the global power to expand by adopting, I mean, we've got the water warfare, the industry water treaty signed into, I mean, kind of bilateral, I mean, treaty for water dispute between the two countries was done, I mean, about 1960, 60s with support of a World Bank.
And unfortunately, again, I think Pakistan has made it very clear any attempt that by I understand it on the water issues would be an act of war.
So again, Pakistan is trying to send a strong message that this is an issue.
This is the red line.
This is an issue. Pakistan would not like to take easily if India, since seriously, taken about making I mean the water, the weaponization of the water issue.
Professor, the United Nations has called for a restraint, and China has also urged both sides to resolve differences through dialogue.
Do you think international mediation could help de -escalate the current crisis, and what might be the key breakthrough needed to bring India and Pakistan back to the negotiating table?
Well, I think whenever there's a kind of tension between the two sides, I'm talking about even the three wars.
The international committee has always tried to intervene, they have the help.
Even though I think between China, between India and Pakistan, there's a kind of understanding of so -called bilateralism, that is they deal with their disputes in a bilateral way, or multilateral or internationalization, in this case, very much I think the position of Pakistan.
And all in all the international committee, the international mediation has always come a very important role in helping defusing, deescalating the tension.
But I am just concerned that given the risk of miscalculation and the tension and other complicating factors that we talk about, whether at this time the two countries and the region and the world at large will be lucky enough that we'll be able to find a way out.
But I think the key to this is that the international community, the UN in particular, the Joint The Senate Secretary General expressed that, calling for a restraint, China has a neighbor, good close neighbor of the two countries, has also called for restraint.
And China, of course, has also in responding to the ideas of a joint sort of investigation that could be our way.
That other countries, I think, like Iran and others also offer to help.
But all in all I think it would take India and Pakistan to come to the terms, or to the reality where there's no winner for conflict, whatever means is, and whatever the advantages military, economic, and international would be having, in that case is India.
So the real answer is negotiations, talks, but at this moment I think joint investment accepted by India and Pakistan, I mean, which kind of format whether you have to work out supporting international community could it be the first step.
Let us hope that it will take place soon.
That was Dr. Rongeling, Chair professor with the School of International Studies at Sichuan University.
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Prime Minister Mark Carney has declared victory in Canada's federal election.
He promised to fight against Washington's trade war and threats of annexation.
Conservative leader Pierre Polyaev has conceded defeat and said his party will hold the government to account.
So for more on this story, my colleague Zhao Ying joins us in the studio.
Welcome Zhao. Thanks for having me.
To start off, could you briefly introduce Mark Carney and what do you think contributed to his victory in this recent election?
Mark Carney was a former central banker and his path to power has been quite swift because he only entered politics in January of this year, after spending decades in international finance and economic policy and most Canadians knew him as the former governor of the Bank of Canada during the 2008 financial crisis and later as the head of the Bank of England during the turmoil of Brexit.
And he also worked at Goldman Sachs and held senior roles in global institutions.
So he is kind of a technocrat, someone with deep policy expertise but until recently no experience in electoral politics.
So how did he win? Simply put, it is because of Donald Trump.
because this election campaign has become a referendum on Canada's relationship with the United States, especially with Donald Trump, who in recent months imposed steep tariffs on Canadian goods, threatened economic retaliation, and even folded the idea of annexing Canada as the 51st state.
That kind of rhetoric triggered a wave of patriotic backlash, and Carney positioned himself as the only candidate with the credibility, expertise and calm demeanor to stand up to Donald Trump.
His campaign message was quite clear, Canada is under pressure and it needs steady hands at the wheel.
He promised to rebuild the economy, invest in domestic manufacturing and reduce reliance on the U .S. So, I think his combination of economic competence and his patriotic defiance turned out to be what many Canadians were looking for.
Then, from the perspective of the Conservative Party, Pierre Polyaive had been the front runner for quite a while.
What do you think went wrong for him?
His campaign didn't so much collapse overnight, as it was overtaken by a dramatic shift in the political mood in Canada.
And again, this shift was triggered not by domestic issues alone, but by Donald Trump's aggressive rhetoric and policy towards Canada.
because he has built his campaign around frustration with the liberal government, the high inflation, housing unaffordability, and a sense of economic stagnation.
And he championed smaller government, less regulation, and a break from what he called woke ideology.
And that phrase, woke ideology, is often used by conservatives to refer to the progressive stances on social and cultural issues like gender identity, diversity, and inclusion policies and indigenous reconciliation.
His platform promised to limit funding for initiatives he considered overly ideological, defund the national broadcaster and challenge what he described as politically correct or activist agendas in public institutions.
And for a time this message resonated with many Canadians because they were frustrated with the status quo on a Trudeau, but the tone of the election changed when President Donald Trump escalated tensions with Canada.
And suddenly the ballot question shifted.
Instead of asking who can fix the economy, many voters were now asking who can defend Canada.
And that's where Poliov struggled because his heartline rhetoric began to sound very risky and his refusal to clearly distance himself from Trump's worldview, even as Trump attacked Canada's sovereignty made some voters nervous and the pre -election polling showed that the centuries and undecided voters were turned off by his tone and style especially when contrasted with the calm, steady image projected by the Liberal leader, Mark Carney.
Because as we know, Carney framed the election as a fight for Canadian independence and dignity and that resonated deeply in a moment when many Canadians felt threatened not by the eternal cultural wars by external pressure from the U .S. So in short, it's the same populist playbook that once gave the conservative the edge ended up alienating the very voters that he needed to win.
Now that Mark Carney is to continue the post as prime minister, what do you think will be his main focus moving forward?
Well, he has several priorities.
First of all, of course, it's standing up to the United States and defending Canadian sovereignty because Carney has made it very clear the relationship with the U .S. is over.
He promised to push back hard on any new tariffs from the second Trump administration, including keeping retaliatory tariffs in place until the U .S. backs down.
He's also looking to expand Canada's trade ties with other countries to reduce reliance on the American economy.
Second is addressing the affordability and restoring economic stability of Canada.
Carney is promising targeted tax relief for the middle class, including eliminating the federal -state tax on new homes under $1 million for first -time buyers, phasing out the federal carbon tax on consumers, and balancing the federal budget in 4 or 5 years without cutting essential services.
His goal is to ease cost of living pressures without tipping the economy into recession.
Thirdly he is tackling the housing crisis because he plans to launch the National Housing Initiative by creating a new corporation called Build Canada Homes which could fast track construction of affordable housing.
This program actually takes inspiration from postwar public housing campaigns.
First he wants to strengthen Canadian manufacturing because it's committed $2 billion to boost industrial production, especially an auto manufacturing as part of a broader strategy to protect domestic jobs and reduce dependence on foreign supply chains.
And besides, he also pledged to meet NATO's 2 % defense spending target by 2030 and that includes new investment in submarines, icebreakers and surveillance in the Arctic.
Carney, as you mentioned, is over.
What kind of leverage does Canada have when it comes to dealing with Washington's tariff threats today?
Well, as we know, for decades, Canada and the U .S. have been close allies.
They have open trade.
They have shared defense and constant coordination on everything from energy to border security.
And that's the relationship that Carney says is now broken, not by Canada but by US's actions.
And Carney is preparing to move away from this automatic alignment with the US, and instead treat America like any other conservative global power that Canada must negotiate with, push back against, and occasionally confront.
And as for the leverage, Canada does have some important tools.
Like, for instance, under Carney, Canada has imposed tariffs on American goods, including steel, aluminum and cars in direct response to Trump's actions.
And this hits American producers and creates pressure from within the US, especially in border states that rely on trade with Canada.
And second, he has already begun deepening ties with Europe and Asia to reduce economic independence on the US.
And also, the US still relies on Canadian minerals, energy, and water, and Carney has hinted that Canada will be more strategic in how it manages these exports.
Canada does have a leverage.
Very briefly, according to reports, the elections seems to have reviewed some serious regional and generational divides in Canada.
How do you think these divisions could create challenges for as he moves forward?
Yes, it is a significant challenge for Mark Carney because in those oil -rich and gas -rich provinces like Alberta the conservatives dominated almost entirely and many in these provinces feel their resource -rich economies are overlooked by federal policy makers and some had even warned of a national unity crisis if the liberals were reelected.
As you said, apart from the regional device, there are also generational divides And the polling showed that among 18 and do 34 years old conservatives outpaced liberals by more than 10 points.
So, and actually Carney acknowledged that division in his victory speech and he said he intends to govern for all Canadians.
But, of course, bridging that divide will require more than rhetoric.
Thanks, Jia Ying, for your insightful analysis.
Coming up, China's service trade saw strong growth in the first quarter and 8 .7 % increase from a year earlier.
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We'll be back. Hi, I'm Einar Tangan, a political and economic analyst and senior fellow at the independent Taihe Institute.
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Now turning to China's economic performance in the service sector.
China's service trade has seen strong growth.
In the first quarter of the year, it totaled nearly 2 trillion yuan or around 270 billion US dollars.
That's nearly 9 % increase from a year earlier.
Exports rose over 12 % to more than $110 billion, while imports climbed about 6 % to over 150 billion.
Travel services led the surge, jumping over 20 % to about $80 billion.
Exports in that sector almost doubled while imports rose nearly 15%.
to impact what's driving this momentum in China's services trade and what it signals for a broader economic recovery.
I am joined by Dr. Zhao Mi, a Senior Research Fellow with the Chinese Academy of International Trade and Economic Cooperation.
First, let's start with the bigger picture here.
We are seeing nearly 9 % growth in China's service trade.
What do you think is fueling this uptick, especially as the global economy remains somewhat fragile?
Well, we know that China is a manufacturing country, definitely, but we are trying to improve the abilities in the service sectors.
So if you are looking at many of these sectors, and we know that in the WTO, we have 12 main sectors of the services and also almost 160 sectors as a sub -sectors.
So when China entered WTO in the year of 2001, we have made some commitments on almost 100 sub -sectors.
and in the previous about 20 years we have continually open our market of the service.
If you are looking at the RCEP, the Regional Comprehensive Economic Partnership, we have opened even 30 more sub -sectors, so this giving us more strength in developing a better service sectors.
So that is something to do with enterprises, they are able to provide a better service cross -borderly.
Well, for another area I would say for the import also we are trying to improve the market access and also welcomes investors from other countries.
Service sectors, service trade are so different compared with trading goods because they are depending on the abilities of the movement, of the people, the movement of the technology and also a lot of intellectual properties.
In the past several years we have seen that many of the Chinese cities are opening more in these areas like the free trade zones in Shanghai and also other cities, they are having better abilities to getting a better position in the service trade.
Then turning to travel services, we've seen an especially dramatic surge.
Exports grow nearly 98%.
What's behind this sharp increase?
Well, for the export of the travel, it is mean that more foreign people come here to China.
So, I think that there are several factors.
First of all, we have used the unilaterally opening up of the visa -free policies to so many other countries, including many of them from European countries.
And that provided so many opportunities and the facilitation for the people to come here to China to enjoy China's beautiful sceneries and also to interact with the Chinese people.
And second, that we think that there are so many foreign tourists that come here to China and they have brought their own experiences to their friends and communities, which have so many interesting aspects to other people who have not too many knowledge about China.
And third, I would say the Chinese local governments are really trying to attract the tourists, including the foreign tourists.
So they're improving the infrastructure and trying to have better accommodations and also better food.
I would say all these things combined have encouraged so many foreign people to come here to China to enjoy the very interesting culture here in China.
Dr. Zhou, let's shift, folks, to knowledge intensive services.
We see static growth in this sector as well, with a 2 .6 % increase overall.
How important are these sectors for China's long -term economic strategy, especially in areas like research and development and digital trade?
Well, for China many of the Chinese enterprises are trying to improve their position in the global value chain.
But we are not trying to do that by just taking something from other countries.
I think that the basic principle is that we have to do everything based on the market demand and the market rules.
So, for the research and development I think that it is one of the priorities for many Chinese companies.
They want to improve that.
In the past decades, we have benefit allowed by the cooperation with foreign direct investment from other countries.
They have some investment here, like the Microsoft. They have invested here and do some kind of research institute.
Well, it is also true that the benefit allowed also because they have better abilities to to get used to Chinese market demands and also increase their abilities to meet the demand globally.
So I think that the research and development is one of our priorities as we can find from the new development concept.
The first of all is innovation.
We are going to provide a better opportunity for the innovation.
The innovation are not just coming from Chinese people.
If you are looking at the example of Huawei, they have attracted so many foreign scientists to come here, mathematics, physics, and also in different areas.
I think that all these people enjoyed to work here because they are having a very good plan form, and the Chinese government are making very important promises that we are going to provide them with even better future.
So the development of the research and development, like research and the development fields, as you mentioned, the knowledge intensive areas are really keen for us to catch up with the leading countries and leading enterprises.
In some fields, we are going to lead the world trend including artificial intelligence or other kind of technology.
We are hoping that they can have a better performance here in China.
Then, from a macro perspective, how will the strong performance of service trade in the first quarter impact China's overall economic growth this year and also its employment and ongoing industrial restructuring?
Well, I have to say that China is still a manufacturing -dominated country, so the main strengths are coming from manufacturing, but the service industries are really important because they are not only trying to give more trade volume but also trying to integrate the manufacturing and also to give better support for the development of the trading goods.
So the service trades are also one of the areas that we are going to open to the foreign companies.
If you look at the fact that when we're putting some practices in the free trade zones here in China the most important area and sectors are based on the service.
So the services still are developing, I mean it's expanding, it's a range and arena so we believe that the cooperation with trade services and the trading goods can really benefit both of the domestic market and foreign market.
I think that is one of the very important areas that we are allowing the different cities in China to do their own experiment.
These experiments are based on their resources, their industries and their demands for the better development.
So these experiences can give us more lessons or experiences to copy to other areas which is definitely one of our targets to support the development of the multilateral systems and their original trade cooperation.
Then looking ahead, what risks or headwinds might impact services trade in the coming quarters in China and how can China mitigate those risks?
Well, it's very difficult for us to get to the targets smoothly because we are facing many protectism from United States, from other countries.
I think that is really a challenge we have to face, and the second is that I think there are so many new age of development like artificial intelligence combined with different technologies which are having so many requirements by us to cooperate with our partners.
And the third one is about how can we face the uncertainty of the world trade and can we do more to improve the resilience.
I hope that would be done by the cooperation with our trading partners also.
That was Dr. Zhou Mi, a senior research fellow with the Chinese Academy of International Trade and Economic Cooperation.
Coming up, global carmakers flocked to Shanghai, eyeing deeper integration in China.
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The Shanghai Autoshow is riving up exchanges between automakers on the latest technological innovations and the industry's challenges amid a global trade war.
German automaker BMW announced that it plans to start integrating artificial intelligence from Chinese start -up DeepSeq in its new models in China later this year.
Chinese automaker Zikr debuted its first hybrid model with 800 -watt fast -charging technology.
Multinational carmakers and industry suppliers are showcasing their products and technologies and reaffirming their confidence and deep reliance on Chinese market.
Despite rising uncertainties in the global market, many are stepping up investment and accelerating integration into China's innovation ecosystem.
With more on this, my colleague Zhao Yang spoke with Yan Liang, a Professor of Economics at the Willamette University.
So Yan, first tell us, what are something new at this year's Shanghai Auto Show?
Well, I think the Shanghai Auto Show has showcased really not just a collection of new cars, but really kind of a window into the future of automotive world.
I think there are just so many exciting cars and showcasing so many exciting futuristic technologies and all the cooperative opportunities between different, you know, automotive companies and tech companies.
And I think it is just amazing to see from all these electric wagon to Zecher's luxury SUVs to Mazda's very sleek new EVs. I think it just shows that China's market, the demand, it's driving all the innovations at all the different levels including these cars' performances, the designs, the various technologies, and also just the luxurious design and the experiences.
I think it's just really offensive of all these different technologies, how it could drive the future automobile industries.
And as you mentioned, there is a huge presence of electric and intelligent vehicles.
Over 80 % of the models displayed on the auto show are either EVs or hybrids.
So, what trend does it tell us about the auto industry right now?
Well, I think as you just mentioned, I think one is this energy efficiency, you know, the futures of renewable energies are going to be the main driving sort of fields for these cars.
And as you mentioned that so many of these cars are electric or hybrid cars and they feature the really cutting edge technologies.
for example, like the Zickers, their Nicex SUV, they're able to have 236 miles on all electric range.
And so I think that is really amazing when it just showcase how much the battery technology has improved.
But in addition to that, you mentioned the sort of intelligence of these cars.
And I think that is also very important because a lot of these cars are able to integrate AI features in it, and we see B &W is teaming up with Alibaba, and Mercedes Benz is teaming up with Bidence.
They're all integrated, also deep -sea in their cars.
And so I think, going forward, these cars are not going to be clean, but they're also going to be very intelligent and provide very good driving experiences and also enhanced safety features, I think, for all the drivers.
So, I think this is really the trend, and I think China is now really leading the way, both in terms of new energy cars, but also in terms of all these intelligent features, in terms of design, in terms of software.
And I think this is just showcasing that China's technologies and its energy development are really helping drive a very good ecosystem when it comes to the automotive industry.
despite the tariffs on the auto impulse becoming a global issue the cooperation between Chinese and foreign car makers and even suppliers are getting even stronger so how do you explain that well you're right I think despite all these tariff threats we're seeing over 1 ,000 companies from 26 countries and regions are here at the Shanghai Auto show and I think that just means two things, one is that global trade is really the trend.
Companies across borders will have to cooperate with each other, they want to learn from each other, they want to cooperate in technologies and also in their productions because when it comes to trade, it's not a zero sum game.
So countries and companies can cooperate so they can divide up the markets and develop their own sort of niche markets.
markets, and they're able to accomplish the economies of the scale right.
So if all cars, if they divide a market to such a small segment, if they only serve the domestic market, their scale of economy is not going to be large enough for them to be able to reap that efficiency gain.
So I think that is very important that companies understand by cooperating each other they can achieve the economies scale, they can expand the market beyond their national borders.
And so that way, you know, TREE can be a win -win game instead of a zero -sum game.
And second, I think it really just showcase that for each individual company, they are limited in terms of their R &D resources, in terms of their technological capacity, in terms of their talents.
But by drawing both together, as I mentioned earlier, you know, some of these traditional car makers are now teaming up with some of their Chinese AI companies.
And so that way you can really build a very, you know, endogenous, I would say, a growth model where they each can contribute together to this market, right?
The automakers know how to make cars and the AI companies know how to make a car smarter.
So I think this is a very good case, a excellent example of this kind of technological cooperation can really, I would say, enlarge, right, the games for both the participants.
And so I think that it's really key to understand that trade and cooperation are the main trend of the market despite all these tariff threat.
And I think also, very interestingly, you see a lot of European cars, car makers.
They're coming to China, they both build up their local supply chains, they're in China, for China.
So they see China as a big potential market and a technological partner.
And I think that just define all these sort of threat from the United States that try to to work with other countries to isolate China.
I think for other countries, they see China as an opportunity, not a threat.
And China is the world's largest auto exporter.
So with the U .S. tariff policy or the trade tension, where do you think will be the main export markets for China's EVs?
Well, I think that's an excellent question.
I think, first of all, China's EV does not have a very large presence in the United States.
In other words, China doesn't really depend on the U .S. market for its EVV.
China's EV exported U .S. is probably only about 1 % of its total exports of EVs. And it's not even just it's not finished cars, it's mostly components and parts.
So in that case, China really doesn't rely on the U .S. market for its EV sales.
European markets, as I mentioned earlier, there's a lot of cooperation, there are European cars they are selling in China, but they're also Chinese cars, BYD, for example, are selling very well in European markets.
And the other one I think very important is these vast and very fast growing global sales markets.
As we know that the Chinese EV industry is really a very comprehensive, a very tiered system.
In other words, there are, like I mentioned these very high end, luxurious EVs, but they also a very large market domestically as well.
So let's not forget a lot of these EVs are sold domestically.
About 85 % of these cars still have very large market demand within China and also outside of China, so the U .S. is really not that important as for destination in this case.
And we've seen the fierce competition in the auto industry today, but competition is good for developing innovations and innovations are very positive for the customers.
So yeah what do you think about the outlook for global auto industry?
Do you think the future transportation model will be totally changed with the development of the EV self -driving and artificial intelligence?
Right I believe this is the trend, like I said the new energy vehicles and also intelligent And diversification in the future automotive world.
And, I think again, China's model is definitely, I would say, a future trend, where the United States is looking to the past. Now, I would also say that with this energy, especially now with the battery technologies, it's going to, like you said, bring down the cost, and with the competition, it's going to drive more innovations.
So all of these would generate benefits for consumers, not only in terms of affordable prices, but more importantly, I think, is improved quality and safety of these vehicles.
So I think this is why it's important that companies continue to cooperate and also compete to drive their innovations, to continue to produce good cars.
with quality low -priced cars or relatively price competitive cars for the consumers.
That was Yanliang, a professor of economics at Willamette University.
That's all the time for this edition of RØDE today.
I'm Ganna in Beijing, thank you so much for listening.
Bye for now.
